ESTRATÉGIA DE GERAÇÃO AO MÍNIMO CUSTO E ASSIMETRIA DE INFORMAÇÕES: O CASO DA OPERAÇÃO DO MERCADO DE ENERGIA ELÉTRICA DO BRASIL

Abstract

This paper aims to analyse the information asymmetry as a source of inefficiencies to the Brazilian Power Industry. This article focuses on the currently adopted prices formation model based on operation costs minimization without price bidding. We show that the use of adverse selection, by means of a defensive conduct in the electricity production policy (i.e., no exposure in the spot market, but with with some energy waste), sensibly affects the power industry's overall efficiency. Finally we relate these inefficiencies to artificially low spot prices that creat entry deterrence barriers in the electricity generation segment.